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  2. Functions of Advertising Objectives • To operate as communication and coordination devices (copywriter - media buyer - research specialists) • 2. To provide a criterion for decision making • 3. To evaluate results (market share, brand awareness)

  3. Sales As An Objective Advertising Sales Price Distribution Packaging Product features Competition Consumer Tastes Factors influencing Sales

  4. Long-Term Impact of Advertising New customers Immediate Sales Advertising Future Sales Change Attitude Improve image

  5. Operational Objectives of Advertising How does one proceed? • Who is the target segment? • What is the ultimate behaviour within that segment that advertising is attempting to precipitate, reinforce, change or influence? • What is the process that will lead to the desired behaviour and what role can advertising play in the process? Is it necessary to create awareness, communicate information about the brand, create an image or attitude, build long-term brand equity and associations, or associate feelings or a type of user personality with a brand?

  6. Behavioral Dynamics Customer Types Segment O Those buying Other brands exclusively Segment N Those not buying product class Segment E Existing Customers Approach: To increase size of E To attract O to get them to try our brand To attract people from N To increase brand loyalty To reduce flow from E to O To increase consumer promotions viz., premium To increase usage of existing customers

  7. Advertising Response Variables Intervening Between Advertising & Action • To identify and use advertising response variables, the key questions to be addressed are: • What communication, association, or persuasion task will be likely to precipitate the desired action? • How can this task best be conceptualized and measured? • Brand awareness • Brand comprehension • Brand image and personality • Brand attitude • Associating feelings with brands or use experiences

  8. Intervening and Behavioral Variables Model Advertising Variable Intervening Variables Behavioral Variables A Advertising Brand Awareness Trial Purchase B Advertising Brand Awareness Loyalty C Advertising Brand Awareness Knowledge of brand attributes Trial Purchase D Advertising Knowledge of new application Increase usage E Advertising Sales leads F Advertising Knowledge about company Sales via personal selling G Advertising Associate Brand with User Type Loyalty H Advertising Brand Attitude Loyalty I Advertising Associate Feelings and Brand Use Loyalty J Advertising Brand Awareness Knowledge of Brand Attribute Trial Purchase Brand Attributes K Advertising Knowledge of Brand Attributes Trial Purchase Brand Attitude

  9. Specifying the Target Segment A basic question in the objective-setting process is the identity of the target segment. To whom is the advertising to be addressed?

  10. DAGMAR Approach Defining An Advertising Goal An advertising goal is a specific communication task, to be accomplished among a defined audience, in a given period of time.

  11. A Communication Task Unaware Aware Comprehension and Image Attitude Action A Hierarchy of Effects Model of the Communication Process

  12. A Specific Task Measurement procedure: What appeal or image is to be communicated. Benchmark: To know the starting conditions. To know whether the existing image needs to be changed, reinforced, diffused or sharpened. Target Audience: To know the target audience precisely. Time Period: The objective should involve a particular time period. Written Goals: Goals should be committed to paper.

  13. Challenges to the DAGMAR Approach Sales Goal: Only a sales measure is relevant. Practicability: Implementation difficulties inherent in approach. Measurement Problems: What should we really measure when we speak of attitude, awareness, or brand comprehension? Noise in the System: Many causal factors other than advertising that determines sales. Inhibiting the Great Idea: The “great creative idea” is a dream or hope of many advertisers. Hierarchy Model of Communication Effect: attacks the basic hierarchy model which postulates a set of sequential steps of awareness, comprehension, and attitude leading to action. Action can precede attitude and even comprehension with an impulse purchase of a low-involvement product.

  14. Continuous Advertising Planning Program (CAPP) - Consumer Demand profile Preference Equality Brand Awareness Brand Acceptance Brand Bought Last Brand Satisfaction Total Users

  15. Elaboration Likelihood Model (ELM) Advertisement Motivation to Process Information No Peripheral Cue Present Yes Ability to Process Information No Yes Yes Central Route to Attitude Change Peripheral Route to Attitude Change The ELM Model of Attitude Change